Consumer Prices Unchanged in May
Meanwhile, the Commerce Department said that U.S. housing starts increased 11.6% in April, the biggest percentage gain in almost seven years.
The CPI is the most widely followed gauge of U.S. inflation and its lack of growth may reflect a leveling of demand for consumer goods, which could affect demand for trucking services.
Labor’s report found May was the tamest month for inflation since December, when prices fell 0.1%. Excluding the volatile energy and food sectors, the core rate of inflation rose 0.2% in May after rising 0.3% the month before.
Prices paid by consumers in May were 1.2% higher than the same time last year. That is the smallest increase since February and shows companies are reducing prices to drum up demand, Bloomberg reported. The news service also noted this report gives the Federal Reserve further assurance it can hold off on raising interest rates.
Commerce said groundbreaking for new homes jumped to a seasonally adjusted 1.733 million annual rate from a downwardly revised 1.553 million rate in April.
Analysts were expecting a rate of 1.599 million, Reuters said.
This was the first increase in three months, and kept housing starts on pace for one of the strongest years on record.